NRI FAQ

Any Indian who is either a citizen of India or a foreign nation of Indian origin who has been living outside India for the purpose of employment, business or any vocation and stays in India for less than 182 days will be called as NRI as per India’s Foreign Exchange Management Act (FEMA) 1999.

According to Indian Constitution or the Citizenship Act , 1955. A person will have PIO status , who at any time held an Indian Passport, or who or either of his parents or grandparents were Indian citizen.This is not applicable for persons who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan.

Yes. As per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999 a person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India.

Under the general permissions available, an NRI/PIO may purchase residential/commercial property in India out of funds remitted to India through normal banking channels or through funds held in his NRE/FCNR (B)/NRO account. No transaction will be allowed outside India.

In case of residential properties, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in an NRE Account. Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or from the funds held in FCNR or NRE Account.

Yes. A Foreign National of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can acquire residential properties on lease in India. If the lease does not exceed five years, he/she does not require any prior permission from the RBI.

Yes, the RBI has granted general permission for sale of property. The remittance should be made to a bank However, where another foreign citizen of Indian origin purchases the property, fundstowards purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.

The housing loan needs to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI. Generally, payments are done through NRO, NRE, NRNR and FCNR accounts. These accounts change on the basis of RBI regulations.

Home loan offered to NRIs do not exceed 5 years in major cases. However, some financial institutions offer loans for a term of 7 years as well. The repayment for the loan is done through monthly installments (EMI), which usually begin after the entire loan is disbursed. Cases which involve part disbursement, you need to pay simple interest at the interest rate applicable on the amount disbursed.